partnerships

Are any of you all in partnerships? I'm in one now with a friend and am having concern. Mostly about buying/fininacing equipment. I'm cash only, make do with what we have pooled together till the time comes to make a purchase. He believes the better equipment will gain more customers. Trying to decide? please help if you can.

as far as partnerships go, if you are planning on being in business for a while then you and your partner should spend a little time planning on where you want your business to be in one year, two years and so on. This will get you both on the same track when it comes time for purchases and other business decisions. The old saying is plan your work and work your plan.

and equipment... in my limited experience i've found that equipment will not get you customers. when you upgrade equipment you need to sell jobs to justify those purchases. better equipment means you can get more done, so sometimes the risk of debt is worth it. with planning you won't get in too deep.

being partners isn't bad if you both are working equally towards the same goals.

Partnerships can work - friends or not. What is needed is everything laid out in writing to make it absolutely clear who is responsible for what, who infuses what capital, who does what work, and so on. When, and if there is some sort of argument, you always have the agreement to go back to. It will not eliminate every headache, but it can eliminate a lot of problems. Find a decent small business attorney to set up a partnership agreement. Money well spent.

I have done this twice in the past. IMHO I would will take in laundry before I take in another partner. Be sure you have everything in writing and a good attorney. You are going to need one sooner or later. Also make sure you have buy out agreements and Key Man insurance.